How Can You Tell When a Bill Is Fake?

The ability to discern genuine currency from counterfeit bills is a valuable skill for anyone handling cash. Counterfeit money poses a financial risk, as fake notes hold no value and cannot be exchanged for legitimate currency. Knowing how to identify fake currency helps protect individuals and businesses from financial losses and contributes to the overall integrity of the financial system.

Key Security Features in U.S. Currency

Genuine U.S. currency incorporates several sophisticated security features that are difficult to replicate. These features are present in denominations of $5, $10, $20, $50, and $100 bills, which are the most commonly counterfeited notes. The paper itself is a unique blend of 75 percent cotton and 25 percent linen, distinct from commercial paper, giving bills a specific feel.

One prominent feature is the watermark, an image embedded within the paper, visible when held to light. On denominations of $10 and higher, the watermark matches the portrait on the bill, while $5 notes feature two watermarks of the numeral 5. The security thread is a thin plastic strip running vertically through the bill. This thread is embedded in a different position for each denomination and contains microprinted text, such as “USA FIVE” for a $5 bill or “USA 100” for a $100 bill.

Color-shifting ink is applied to the numeral in the lower right corner on the front of $10 bills and higher denominations. This ink appears green when viewed straight on but shifts to black or copper when tilted. Microprinting, tiny text that requires magnification to read, is present in various locations on bills $5 and higher. These minute words should be clear and sharp.

Raised printing, also known as intaglio printing, gives genuine bills a distinctive tactile feel. The texture of the ink, particularly on the portrait and borders, results from the specialized printing process. Additionally, tiny red and blue fibers are embedded throughout the paper of all U.S. bills, not printed on the surface. Serial numbers are located on the face of the currency and should be evenly spaced and aligned, with their color matching the Treasury Seal. The Federal Reserve and Treasury seals should have sharp, sawtooth points.

Practical Steps for Verification

Verifying the authenticity of U.S. currency involves a systematic approach that focuses on the tactile, visual, and dynamic features of the bill. This method is often summarized as “feel, look, and tilt.” By examining a suspected bill against known genuine characteristics, one can detect counterfeits.

Begin by feeling the bill’s texture. Genuine U.S. currency has a slightly rough, distinct feel. Run your finger over the portrait or other areas with dark ink; you should be able to perceive the texture of the ink.

Next, look closely at the bill, particularly by holding it up to a light source. This allows you to check for the watermark. The security thread also becomes visible when held to light. Examine the microprinting with a magnifying glass; the tiny text should be crisp and legible. Observe the red and blue fibers embedded within the paper, ensuring they are truly part of the paper and not merely printed on it.

Finally, tilt the bill to observe the color-shifting ink. The numeral in the lower right corner will change color as the angle of viewing changes. For the redesigned $100 bill, tilting also reveals the 3D security ribbon, where images of bells and 100s appear to move as the bill is tilted back and forth. This ribbon is woven into the paper, not printed, creating a dynamic visual effect.

Tools for Detection

While manual inspection is a method for checking currency, certain tools can assist in detecting counterfeit bills. These tools offer an additional layer of verification.

Counterfeit detector pens work by reacting to starch present in wood-based paper. When used on a genuine U.S. bill, the ink will typically remain clear or light yellow. If used on a counterfeit bill made from standard paper, the pen’s ink will turn dark, black or brown, indicating starch. These pens have limitations, as they can be fooled by bleached genuine currency reprinted with counterfeit designs.

Ultraviolet (UV) light provides a method for detecting certain security features. When a genuine bill is placed under UV light, the embedded security thread will glow a specific color depending on the denomination. For instance, the thread in a $5 bill glows blue, a $10 bill glows orange, a $20 bill glows green, a $50 bill glows yellow, and a $100 bill glows pink. This characteristic is difficult to replicate, making UV light a valuable tool for confirming the security thread’s authenticity.

Reporting Suspected Counterfeit Currency

If you suspect you have received a counterfeit bill, prevent further circulation and assist law enforcement. Avoid spending or passing on the suspected fake bill. Knowingly using counterfeit currency is illegal and can lead to legal consequences.

Contact your local police department or the nearest United States Secret Service field office. When reporting, recall details about how and where the bill was received, and any descriptive information about the person who passed it. Include physical characteristics, vehicle descriptions, or license plate numbers if observed. Handle the suspected bill as little as possible to preserve evidence, such as fingerprints. Place the bill in a protective covering, like an envelope or plastic bag, and keep it separate from genuine currency until turned over to authorities.